Job satisfaction: Its mediating role in the effect of transformational leadership and organizational culture on employee performance
Keywords:
company, employee performance, job satisfaction, organizational culture, transformational leadershipAbstract
Employee performance is the foundation of a company, because the company's progress is the collective effort of all its employees. The purpose of this study is to analyze the effect of transformational leadership, organizational culture, and job satisfaction on employee performance and the role of job satisfaction in mediating the effect of transformational leadership and organizational culture on employee performance. The population of this study are all employees actively working at PT Sinar Nusrapress Utama in Bali Province. The sample size was 157 employee determined by saturated sampling. The data were collected through questionnaires and analyzed by using Variance-Based Structural Equation Modelling, namely Partial Least Square. The results show that transformational leadership has a positive and significant effect on employee performance, organizational culture has a positive and significant effect on employee performance, job satisfaction has a positive and significant effect on employee performance. Job satisfaction is able to mediate the effect of transformational leadership style and organizational culture on employee performance. For PT Sinar Nusrapress Utama, this research can be used as a reference that transformational leadership style, organizational culture, and job satisfaction are important to maintain company performance and progress.
Downloads
References
Abdullahi, M., Raman, K., & Solarin, S. (2021). Effect of organizational culture on employee performance: A mediating role of employee engagement in Malaysia educational sector. International Journal of Supply and Operations Management, 8(3), 232-246.
Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2020). Organizational culture, innovation and performance: a study from a non-western context. Journal of Management Development.
Acar, A. Z. (2012). Organizational culture, leadership styles and organizational commitment in Turkish logistics industry. Procedia-Social and Behavioral Sciences, 58, 217-226. https://doi.org/10.1016/j.sbspro.2012.09.995
Al-Sada, M., Al-Esmael, B., & Faisal, M. N. (2017). Influence of organizational culture and leadership style on employee satisfaction, commitment and motivation in the educational sector in Qatar. EuroMed Journal of Business, 12(2).
Bassam, M., & Adel, S. (2018). How organizational culture and leadership style affect employees’ performance of genders. International Journal of Organizational Analysis.
Beebe, A., Blaylock, A., & Sweetser, K. D. (2009). Job satisfaction in public relations internships. Public Relations Review, 35(2), 156-158. https://doi.org/10.1016/j.pubrev.2008.09.016
Buil, I., Martínez, E., & Matute, J. (2019). Transformational leadership and employee performance: The role of identification, engagement and proactive personality. International Journal of Hospitality Management, 77, 64–75.
Burhanudin, B., & Tambun, R. (2021). Effect of direct and indirect financial compensation on job satisfaction. International Research Journal of Management, IT and Social Sciences, 8(2), 163-174. https://doi.org/10.21744/irjmis.v8n2.1376
Chammas, C. B., & Hernandez, J. M. da C. (2019). Comparing transformational and instrumental leadership. Innovation & Management Review, 16(2), 143–160.
Chou, P. (2016). Social Exchange Relationship and Employee Attitudes toward Newly Introduced Information System. European Scientific Journal, ESJ, 12(25), 163–184.
Edward, Y. R., & Kaban, L. M. (2020). The effect of transformational leadership and competence on employee performance with job satisfaction as intervening variable. Academic Journal of Economic Studies, 6(2), 62–72.
Eliyana, A., & Ma’arif, S. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144-150. https://doi.org/10.1016/j.iedeen.2019.05.001
Eliyana, A., Ma’arif, S., & Muzakki. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144–150.
Hassi, A. (2018). You get what you appreciate”: Effects of leadership on job satisfaction, affective commitment and organisational citizenship behaviour. International Journal of Organizational Analysis.
Hua, N. T. A. (2020). The relationship between task-oriented leadership style, psychological capital, job satisfaction and organizational commitment: evidence from Vietnamese small and medium-sized enterprises. Journal of Advances in Management Research.
Isac, N., Dobrin, C., Raphalalani, L. P., & Sonko, M. (2021). Does Organizational Culture Influence Job Satisfaction? A Comparative Analysis of Two Multinational Companies. Revista de Management Comparat International, 22(2), 138–157.
Jain, A. K. (2016). The mediating role of job satisfaction in the relationship of vertical trust and distributed leadership in health care context. Journal of Modelling in Management, 11(2).
Jameel, A. S., & Ahmad, A. R. (2020). The mediating role of job satisfaction between leadership style and performance of academic staff. International Journal of Psychosocial Rehabilitation, 24(4), 2399–2414.
Jermsittiparsert, K. (2020). Leadership and Industry 4 . 0 As A Tool to Enhance Organization Performance?: Direct and Indirect Role of Job Satisfaction , Competitive Advantage and Business Sustainability. Agile Business Leadership Methods for Industry 4.0, 233–257.
Jung, D. I., Chow, C., & Wu, A. (2003). The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings. The leadership quarterly, 14(4-5), 525-544. https://doi.org/10.1016/S1048-9843(03)00050-X
Kader Ali, N. N., & Tang, S. Y. (2016). Does Multiple Leadership Styles Mediated by Job Satisfaction Influence Better Business Performance? Perception of MNC Employees in Malaysia. SHS Web of Conferences, 23(2011), 02005.
Karatepe, O. M., Uludag, O., Menevis, I., Hadzimehmedagic, L., & Baddar, L. (2006). The effects of selected individual characteristics on frontline employee performance and job satisfaction. Tourism management, 27(4), 547-560. https://doi.org/10.1016/j.tourman.2005.02.009
Khan, A. N., Ali, A., Khan, N. A., & Jehan, N. (2019). A study of relationship between transformational leadership and task performance: The role of social media and affective organisational commitment. International Journal of Business Information Systems, 31(4), 499-516.
Kim, J. H., Kim, C. S., & Kim, J. M. (2011). Analysis of the effect of leadership and organizational culture on the organizational effectiveness of radiological technologist’s working environments. Radiography, 17(3), 201-206. https://doi.org/10.1016/j.radi.2011.02.002
Kim, K., & Park, H. (2019). Effect of South Korean corporate culture on employees at subsidiary firms in China. International Journal of China Studies, 10(1), 83–105.
Kotler, P., & Amstrong, G. (2018). Principles of Marketing. Edisi 15 Global Edition.
Manzoor, F., Wei, L., Nurunnabi, M., Subhan, Q. A., Shah, S. I. A., & Fallatah, S. (2019). The impact of transformational leadership on job performance and CSR as mediator in SMEs. Sustainability, 11(2), 436.
Narotama, I. B. I., & Sintaasih, D. K. (2022). The role of job satisfaction in mediation the effect of self-efficacy and job insecurity on turnover intention. International Research Journal of Management, IT and Social Sciences, 9(4), 494-513. https://doi.org/10.21744/irjmis.v9n4.2108
Nasra, M. A. (2019). Leadership style and teacher performance?: mediating role of occupational perception. International Journal of Educayional Management, 34(1), 186–202.
Paais, M., & Pattiruhu, J. R. (2020). Effect of Motivation , Leadership , and Organizational Culture on Satisfaction and Employee Performance. Journal of Asian Finance, Economics and Business, 7(8), 577–588.
Pawirosumarto, P. Sarjana, R. G. (2018). The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in Parador Hotels and Resorts , Indonesia. International Journal of Law and Management, 59(6), 1337–1358.
Pors, N. O. (2008). Management tools, organisational culture and leadership: an explorative study. Performance Measurement and Metrics.
Preston, P. (2000). Reshaping communications. Reshaping Communications, 1-320.
Ramli, A. H. (2019). Organizational Culture, Job Satisfaction Also Employee Accomplishment in the Private Hospital. Business and Entrepreneurial Review, 19(2), 157.
Rana, R., K’Aol, G., & Kirubi, M. (2019). Influence of supportive and participative path-goal leadership styles and the moderating role of task structure on employee performance. International Journal of Research in Business and Social Science (2147- 4478), 8(5), 76–87.
Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717-725. https://doi.org/10.1016/S2212-5671(15)00524-9
Roberts, J. A., & David, M. E. (2020). Boss phubbing, trust, job satisfaction and employee performance. Personality and Individual Differences, 155, 109702. https://doi.org/10.1016/j.paid.2019.109702
Saleem, R., Mahmood, A., & Mahmood, A. (2010). Effect of work motivation on job satisfaction in mobile telecommunication service organizations of Pakistan. International journal of business and management, 5(11), 213.
Sami, H., Wang, J., & Zhou, H. (2011). Corporate governance and operating performance of Chinese listed firms. Journal of International Accounting, Auditing and Taxation, 20(2), 106-114. https://doi.org/10.1016/j.intaccaudtax.2011.06.005
Sapada, A. F. A., Modding, H. B., Gani, A., & Nujum, S. (2018). ? The effect of organizational culture and work ethics on job satisfaction and employees performance. The International Journal of Engineering and Science (IJES), 6(12), 28–36.
Shafique, I., Kalyar, M. N., & Ahmad, B. (2018). The Nexus Of Ethical Leadership , Job Performance , And Turnover Intention?: The Mediating Role Of Job Satisfaction. Interdisciplinary Description of Complex Systems, 16(1), 71–87.
Shao, Z., Feng, Y., & Liu, L. (2012). The mediating effect of organizational culture and knowledge sharing on transformational leadership and Enterprise Resource Planning systems success: An empirical study in China. Computers in Human Behavior, 28(6), 2400-2413. https://doi.org/10.1016/j.chb.2012.07.011
Siengthai, S., & Pila-Ngarm, P. (2016). The interaction effect of job redesign and job satisfaction on employee performance. Evidence-Based HRM, 4(2), 162–180.
Soomro, B. A., & Shah, N. (2019). Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, organizational commitment, and employee’s performance. South Asian Journal of Business Studies, 8(3), 266–282.
Sow, M. (2017). The relationship between leadership style, organizational culture, and job satisfaction in the US healthcare industry. Manag Econ Res J, 3(2017), 1332.
Top, C., Abdullah, B. M. S., & Faraj, A. H. M. (2020). Transformational leadership impact on employees performance. Eurasian Journal of Management & Social Sciences, 1(1), 49-59.
Tran, Q. H. N. (2020). Organisational culture , leadership behaviour and job satisfaction in the Vietnam context. International Journal of Organizational Analysis.
Published
How to Cite
Issue
Section
Copyright (c) 2022 International research journal of management, IT and social sciences
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles published in the International Research Journal of Management, IT and Social sciences (IRJMIS) are available under Creative Commons Attribution Non-Commercial No Derivatives Licence (CC BY-NC-ND 4.0). Authors retain copyright in their work and grant IRJMIS right of first publication under CC BY-NC-ND 4.0. Users have the right to read, download, copy, distribute, print, search, or link to the full texts of articles in this journal, and to use them for any other lawful purpose.
Articles published in IRJMIS can be copied, communicated and shared in their published form for non-commercial purposes provided full attribution is given to the author and the journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
This copyright notice applies to articles published in IRJMIS volumes 7 onwards. Please read about the copyright notices for previous volumes under Journal History.
